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Nigeria Wins $3.38bn Mambilla Power Project Arbitration

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Nigeria has secured a favourable ruling in a long-running international arbitration dispute involving Sunrise Power and Transmission Company Limited and the proposed Mambilla Hydroelectric Power Project in Taraba State.

An arbitration tribunal under the auspices of the International Chamber of Commerce (ICC) in Paris issued its award on September 17, 2026, rejecting claims by Sunrise that together represented more than $3.38 billion in potential financial exposure for Nigeria.

President Bola Ahmed Tinubu described the decision as a major development for the long-delayed power project, saying it removed what he called the biggest legal obstacle that had hindered the project for years.

What the arbitration was about

The dispute is linked to agreements surrounding the development of the Mambilla power project, one of Nigeria’s long-standing plans for expanding electricity generation.

The project was originally conceived as a 3,050-megawatt hydroelectric plant under a build-operate-transfer arrangement. The Nigerian government later revised the planned capacity, with more recent plans placing it at roughly 1,500 megawatts.

The dispute dates back to a 2003 agreement involving Sunrise Power.

Sunrise subsequently commenced arbitration proceedings against Nigeria in 2017 over disputes connected to the project.

According to the State House, the latest proceedings involved a claim of $680 million plus interest, alongside another related claim exceeding $2.7 billion in compensation and interest. Together, the claims amounted to more than $3.38 billion in potential exposure.

Tribunal rejects Sunrise claims

The ICC tribunal ruled in Nigeria’s favour and rejected the claims brought by Sunrise.

Reporting on the award indicates that the tribunal rejected Sunrise’s claim that Nigeria had breached obligations under a settlement agreement and related addendum.

It also rejected a request for Nigeria to pay $400 million linked to a $200 million settlement amount and an additional $200 million default payment.

The ruling therefore removes the immediate liability represented by those claims.

It does not, however, mean that Nigeria has received $3.38 billion. The figure represents the value of claims that could have exposed the country to substantial financial obligations.

Nigeria also awarded legal costs

The tribunal’s decision went beyond simply rejecting the claims.

According to reporting on the final award, Sunrise and its promoter, Leno Adesanya, were ordered to reimburse Nigeria for a substantial portion of its legal costs.

Nigeria’s legal expenses were reported at about $11.82 million, with approximately $9.32 million to be paid by Sunrise and Adesanya, alongside interest under the terms of the award.

This means the ruling has financial implications beyond the dismissal of Sunrise’s claims.

Tinubu welcomes the ruling

President Tinubu welcomed the tribunal’s decision and praised Nigeria’s legal team.

He specifically commended Attorney-General of the Federation and Minister of Justice Lateef Fagbemi and officials of the Federal Ministry of Justice.

The President also recognised Nigeria’s external defence team, led by Elizabeth Oger-Gross and Tolu Obamuroh of Paul Hastings LLP.

Former President Olusegun Obasanjo and the late former President Muhammadu Buhari were also acknowledged for their testimony during the proceedings.

Former ministers Babatunde Fashola and Suleiman Adamu were among other witnesses and officials mentioned by the President.

Why the Mambilla project matters

The Mambilla project has remained one of Nigeria’s most ambitious proposed hydroelectric developments for decades.

Its planned capacity has changed over time as successive governments and project developers have examined the cost, financing structure and commercial viability of the scheme.

The government later reduced the proposed capacity from the original 3,050MW design to about 1,525MW and subsequently around 1,500MW, with officials saying the changes were intended to make the project more financially viable and acceptable to lenders.

The project is intended to add substantial generation capacity to Nigeria’s electricity system if construction, financing and other outstanding requirements are eventually completed.

However, the arbitration victory itself does not mean that electricity generation from Mambilla is imminent.

A legal hurdle has been removed, but work remains

Tinubu said the ICC decision had cleared the “single biggest legal hurdle” affecting the project.

That statement reflects the government’s view of the ruling’s significance.

The arbitration outcome resolves the claims addressed by the tribunal, but the project still depends on financing, contracting, construction and other technical and administrative requirements before it can produce electricity.

That distinction is important because an arbitration victory and the physical completion of a major hydroelectric project are separate developments.

The wider legal history

The Mambilla dispute has also been connected to domestic investigations and legal proceedings over the original contract.

The State House said the dispute originated from a 2003 contract for a 3,050MW hydroelectric plant that the Federal Executive Council did not authorise.

The Economic and Financial Crimes Commission has investigated aspects of the project and related contractual arrangements.

There have also been domestic court proceedings involving individuals connected to the dispute.

Those proceedings are separate from the ICC arbitration and should not be treated as findings against every person or organisation involved in the wider Mambilla project.

What the ruling means for Nigeria

For the Federal Government, the immediate financial significance is the rejection of claims worth more than $3.38 billion.

It also gives Nigeria a favourable outcome in a dispute that had remained unresolved for years.

For the Mambilla project, the ruling removes a major legal dispute identified by the government as an obstacle to progress.

The next question is whether the government and its partners can translate the legal development into financing, construction and eventual electricity generation.

Nigeria still faces the practical challenge of developing a large hydroelectric project that has been delayed for many years.

The ICC decision settles a major arbitration dispute. The delivery of the power project itself will depend on what happens next.

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